National Minimum Wage & Superannuation Changes

#What's happening?

Across Australia, minimum wage and superannuation changes have come into effect.

NOTE: The changes to the Registered and Licensed Clubs Award are one of the few awards that aren't changing until October 1st, 2022.

#What's this mean for ClubsHR?

Out of the box, ClubsHR has compliant and up-to-date award interpretation for the Registered and Licensed Clubs Award. So, unless you have created custom pay templates for staff on EBA's, there is nothing you need to do in ClubsHR. However, it's essential to speak to your accountant to ensure your payroll software is kept up to date.

Before addressing the changes to the award, here's some ClubsHR education.

ClubsHR doesn't send any financial information to your payroll software. This is because we believe your payroll software should be your point of truth. This prevents erroneous updates made in ClubsHR from being pushed to your payroll software and overwriting the correct rates or financial information.

#So, what do I need to do?

In ClubsHR, nothing. We have you covered with a compliant award for ClubsNSW. If you have created any custom pay templates that are outside what we have provided you, you will need to speak with an accountant, and you're welcome to reach out to us to assist you in updating your templates accordingly.

In your payroll software, you or your accountant should be reviewing all your impacted staff concerning the minimum wage and superannuation changes and making the required updates accordingly.

#What has changed?

In preparation for the changes that have come into effect, we drafted our file notes that we will share with you today.

NOTE: Any information provided by ClubsHR around minimum wages and the increase in superannuation is provided in a general nature and should not be relied upon. You should speak to your accountant or other qualified persons if you need any advice on the changes.

#Minimum Wage Changes

Legislation in effect: July 1 2022

The National Minimum Wage increase applies from the first full pay period on or after July 1. So if you have a weekly pay period that starts on Mondays, the new rates will apply from Monday, July 4.

Award increases happen in 2 stages. Most are the first pay period on or after July 1. However, some awards in aviation, hospitality and tourism happen from October 1.

The affected awards concerning the October 1 rule are:

###Aviation Aircraft Cabin Crew Award
Airline Operations – Ground Staff Award
Air Pilots Award
Airport Employees Award
Airservices Australia Enterprise Award 2016

###Hospitality Hospitality Industry (General) Award
Registered and Licensed Clubs Award
Restaurant Industry Award

###Tourism Marine Tourism and Charter Vessels Award
Alpine Resorts Award

#What is the increase?

• National Min Wage increased by 5.2%, which is $40 p/week

• New minimum wage is $812.60 p/week or $21.38p/hour

• Award increase 4.6% subject to a minimum increase of $40 based on a 38-hour week full time

Minimum award:

• Above $869.60 is a 4.6% increase • Below $869.60 is a $40 increase

#How does this look for ClubsNSW?

1. Classification levels Introductory – Level 4 will receive an increase of $40 per week.

2. Classification levels 5 – 13 will receive an increase of 4.6%.

To read more, ClubsNSW has a Circular in the member portal: https://www.clubsnsw.com.au/Resources/Publications/Circulars/2022/22-076 (Requires a login)

#Changes to superannuation from July 1 2022

In addition to an increase in minimum wages, there are changes to the superannuation guarantee you should know about taking effect from July 1. It would be best if you made these changes in your payroll software.

The changes include:

• removal of the $450 super guarantee threshold

• an increase in the super guarantee rate from 10% to 10.5%

The information above is sourced from the ATO and Fairwork Australia.